Esuperfund SMSF, page-14

Did a member change to Pension phase during the year?

When a SMSF has a balance in both the Pension and Accumulation Account at any point during the financial year, an Actuarial Certificate is needed. The actuarial certificate determines what percentage of the Fund was in Pension mode (and hence tax free) and what percentage of the Fund was in Accumulation mode and hence taxable.

The good news is that the Actuarial Certificate can be avoided.......... click here for ESuper detail on these 4 ways:

1. SMSF with only a "Pension Account" Balance
2. SMSF which converts to Pension Mode on 1 July

3. Contributions and Rollovers immediately converted to a Pension
4. The SMSF is entirely in Accumulation Mode and converts entirely to Pension Mode during the year